How to Save Money on Car Insurance

There are a number of various ideas to save money on car insurance. Below are six of the most common money saving tips. While there may be more these are the easiest to do and can start saving money immediately.

Keep your driving record clean

In other words, don't get nailed for speeding like I did a few months back. I was fortunate in that it was a first offense, and I was able to keep my record clean by pleading "nolo contendre" (no contest) and paying the fine, but next time I won't be so lucky, as I'll wind up with points on my license and higher insurance premiums.

Increase your deductible

If you're willing to bear a greater portion of the risk, you can save a significant amount of money. Simply call your agent and ask them to increase your deductible. Just be sure that you have enough cash on hand to cover your out-of-pocket expenses in the event of an accident.

Drop unnecessary coverage

If you're driving an older car, you might want to consider dropping your comprehensive and/or collision coverage entirely. After all, what's the sense in paying a ton of money to insure against damage to a car that might not be worth repairing? Note that I'm not suggesting that you drop your insurance coverage entirely, just the portion that pays for repairs on your own car.

Bundle multiple policy types together

I can't speak for all insurance companies, but we get a nice "multi-line" discount for carrying multiple policies with a single company. We actually have two car policies, our home owner's policy, a personal articles policy (for my wife's engagement and wedding rings) and an umbrella policy all with the same company.

Ask about other discounts

You might qualify for discounts for being accident-free, renewing your policy, driving relatively few miles each year, taking a defensive driving course, etc. Be sure to talk to your agent and get what you have coming to you.

Shop around

Assuming that you're doing everything else right, another great way to save money on car insurance is to comparison shop. You can either call around to local agents, or use an auto insurance comparison tool. Whatever you do, be sure to buy from a reputable company so you won't run into any problems if/when you file a claim.